Mortgage Brokerage deals with hundreds of institutional and private lenders with unlimited funds, capable to fund the most difficult requests for people with job, credit, and other issues. Even if you are self employed, new to the country or first time home buyer, we have a solution for you. Rate and products, custom fitted to your needs and circumstances. FREE ADVISE!

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Tuesday, 1 April 2014

How mortgage refinancing works and what are the reasons

A
home mortgage is a long term commitment. For most people it is a 30-year commitment. In this amount of time many things can change. Many
people will outgrow their home and sell their house. Sometimes people also
outgrow their mortgage. In this instance, mortgage refinancing can be useful.Benefits
of refinancing: There
are many reasons why people decide to refinance their home. As you pay off your
mortgage, the principle reduces while the value of your property
increases. The difference between these two figures is known as equity. When
you refinance your home, the bank may give you a home equity loan. You can use
this money to improve or enlarge your home, pay for tuition, or even take a
holiday.

Sometimes,
as a mortgage decreases, home owners decide to refinance for a lower rate in order to lower
their monthly repayments. This is a good option if you are struggling with
difficult financial times or are just looking to free up cash flow for other
projects.

Refinancing
your home also gives you a chance to renegotiate your mortgage terms with your bank
or lender. This means that you may be able to achieve a lower interest rate and
also lessen the fees and charges which are attached to your home loan.

The
Refinancing Process: When
you refinance your mortgage, you can stay with your current lender or shop around
for a new one. MortgagePROwill do the shopping for you, providing peace of mind and convenience. The refinancing process is similar to the one when

you
originally bought your house and applied for a mortgage.

The
bank or lender will most likely go ahead with the usual checks, such as
employment and identity checks. They will also require a valuation of your
home, which they will arrange. Once this has all been finalized, your old
mortgage will be discharged and your new mortgage will come into effect.

There
are usually some fees attached to a refinance loan. These can include a loan
establishment fee, a valuation fee, and the possibility of ongoing fees. There
is a chance that there may be a fee from your lender for the early discharge of
your loan.

Search for a mortgage: Finding
out as much mortgage information as possible before you sign up for any loan is
a good idea. Being aware of not only the interest rate, but the fees and
charges attached to the loan product, is essential. Reading the small print now
can save a lot of heartache later.

About Me

I am a long term investor in Real Estate and PrivateMortgages for a double digit return. I am also a mortgage Broker at MortgagePRO
Ltd. helping people even with hard to approve files to get the best rate first
and second mortgage custom fitted to their own circumstances. I also offer
investors mortgage investment opportunities for an exceptional return, securing
them monthly income and retire early as these investments are RRSP eligible.
You do not have to be an expert, I will guide you. I also do credit counselling
and debt elimination therapy for people interested to get their financial well
being in order to eliminate stress.